Economy affects sports business

While America is enduring this difficult economic struggle, the sports industry is an area that the effects are clear.

Because they cannot sell enough tickets, some NFL games have been blacked out. The Jacksonville Jaguar season ticket base has dropped from 42,000 to 25,000 (USA Today). It was estimated, before the season started, that at least 12 out of 33 teams would sell out regular season games.

“People are having a tough time,” said senior VP Tim Connelly in a USA Today interview. “People are watching their dollars and they’re being tighter than ever.”

Another problem with the industry is the salaries of the stadium workers. On average, janitors at the Baltimore Orioles stadium make $7/hour. The organization employs about 300 people, all of whom are not receiving the pay that they deserve due to the economy.

“Six months ago, we were saying sports was recession-resistant rather than recession-proof. But I don’t think anything is recession-resistant,” NBA Deputy Commissioner Adam Silver says in a USA Today interview.

Some may argue that the sports industry would not be suffering if they weren’t building so many new facilities. Although they may save some money now, the industry is focusing on the long-term effects. They figure that if they build new facilities, it will attract more fans, which creates a bigger profit.

A different way to cut costs would be to reduce the salaries of the owners and the players. The players should get paid a somewhat high number because they are the ones who do the work, attract the fans, and make the industry money. On the other hand, the only reason the owners are where they are, is because they started out with a lot of money. Reducing how much the owners and players make can bring in a bigger profit for the industry and can make seats cheaper for the fans.